Tips on Rental Property Rehabilitation
Many people are familiar with rehabilitating a house for their personal use, but not that many know the strategies involved with rehabbing rental property. Doing so could help you enjoy substantial benefits, especially if the property is in a strong market. Here are some tips to help you know what to expect if you choose to take on this type of project.
One of the advantages of rehabilitating rental property is that your tenants will likely not have the same high expectations as a buyer may have. For example, if someone is buying a home, they may want granite countertops and ceramic tile floors. A renter, on the other hand, may be quite happy with laminate countertops and basic vinyl flooring. As a result, you will not have to spend nearly as much money on a rental rehab.
But just because it may not cost as much, that does not mean you can scrimp on the basics. Renters will still expect basic systems such as electrical and plumbing to be in good working order, for the roof to not leak, the air conditioner to work properly, etc. Making sure the basics are covered may not add much to the resale value, but ignoring them will make your property nearly impossible to rent.
In most cases, renters will put a property through more wear and tear than a buyer will. So opt for durability whenever you can when rehabbing a rental property. Look for carpet that will last longer, for instance, than one that may look more attractive. Use laminate flooring in lieu of carpet whenever you can. There is really no point in adding fancy amenities to attract buyers until you are ready to sell the property.